Philex Mining Corp., one of the country’s largest producers of copper and gold, said Monday it plans to prolong the life of its underground mine in Padcal, Benguet, potentially overlapping with the start of the commercial production of its Silangan mine in Mindanao by 2025.
The decision to extend Padcal’s mine life beyond 2024 will depend on the study of the remaining mineable reserve, favorable price of copper and gold, cost of producing the metals moving forward and obtaining the required government permits, the company said.
“Studies are ongoing. The extension of Padcal’s operation will be dependent on the study of the remaining mineable reserve, favorable price of copper and gold, as well as cost of producing the metals moving forward and obtaining the required government permits. If prices hold on to the levels where they are now, which we consider high, then there is a possibility of extension,” said Philex president and chief executive Eulalio Austin Jr.
Padcal, where copper and gold, were extracted beginning 1958, is scheduled to cease operation by the end of 2024 after several extensions of its mine life.
Philex said it would begin the development of a starter mine in Silangan in Surigao del Norte this year. The copper and gold mine will start commercial operation by early 2025, limiting any major impact to Philex’s income flow even if Padcal ceases operation as scheduled in 2024.
An overlap in Padcal and Silangan’s operation could bolster Philex income stream, officials said.
Philex said it secured all regulatory approvals for Silangan, including the nod of the local government units, indigenous people and the Department of Environment and Natural Resources. The mineral production sharing agreement, which was scheduled to expire in 2024, was also extended by the full 25-year term or up to 2049.
An initial investment of $224 million is needed to develop a starter mine that will produce around 2,000 metric tons of ore per day. Production, under the current development plan, will be ramped up to 12,000 MT a day or 4 million MT annually by the 12th year. With Jenniffer B. Austria
Philex estimated total investment, including spending to operate and maintain the mine, would reach $1.5 billion over its 28-year-mine life. It is also expected to generate thousands of jobs, particularly in Surigao del Norte towns of Placer, Tubod, Tagana-an and Sison, and contribute billions of pesos in taxes to both the local government units and the national government.